GST registration on rental Income in other state

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This query is : Resolved

Quick Summary

If you own commercial property in Gujarat and reside in Maharashtra, renting it out means you'll likely need to charge GST. Your current composition scheme in Maharashtra will need to be changed to a regular GST registration. You will charge IGST using your existing Maharashtra GSTIN, and there's no need for a separate registration in Gujarat. The place of supply is considered Gujarat, and you'll need to adjust your GST filings accordingly.

Piyush

Piyush (Querist)

23 September 2021 An Individual already having GST number in Maharashtra and filing GSTR under composition scheme. He buys commercial property in Gujarat, wants to give the same on Rental basis (rental would be approx 8-9 lacs pa)

Query is whether he has to charge GST on Rental from other state?
Does he has to take another GSTIN for Gujarat state?
Will it have any impact on composition scheme under which he is filing his GSTRs?

CMA Poornima Madhava

CMA Poornima Madhava (Expert)

23 September 2021 1) composition scheme cannot continue because this would be an interstate transaction and the dealer would be a regular registered person under gst.
2) no need of separate gst registration. Invoice can be generated using the existing gstin

Udaya Chandran

Udaya Chandran (Expert)

23 September 2021 > The place of supply is Gujarat, yes, a separate GST Registration is required in Gujarat.
> He will be no longer eligible to opt for composition scheme

CA Altamush Zafar

CA Altamush Zafar (Expert)

25 September 2021 Your composition scheme registration will have to be changed to regular. No need to take registration in Gujarat. You will charge IGST from Maharashtra registration.

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